Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential
B. recessionary; higher; potential
C. recessionary; lower; lower
D. expansionary; higher; higher
Answer: A
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Which of the following is not a requirement for price discrimination?
a. The firm must be able to identify consumers who are willing to pay more for the product. b. The firm must be able to prevent resale of the product. c. There must be a downward-sloping demand curve for the product. d. The firm must face different costs for the goods sold to different consumers.
You are a hotel manager and you are considering four projects that yield different payoffs, depending upon whether there is an economic boom or a recession. The potential payoffs and corresponding payoffs are summarized in the following table.ProjectBoom (50%)Recession (50%)A$20-$10B-$10$20C$30-$30D$50$50The variance in the returns of project C is:
A. 0. B. 225. C. 900. D. 1,600.
We generally expect the price elasticity of supply to be
A) zero. B) negative. C) positive. D) positive or negative, depending on demand.
Refer to the information provided in Figure 7.4 below to answer the question(s) that follow. 
Figure 7.4Refer to Figure 7.4. The marginal product of the fourth worker is
A. 8. B. 12.5. C. 48. D. 92.